Excellent results at Harmony’s PNG operations

Harmony Gold Mining Company Limited is pleased to announce excellent quarterly production results at its Hidden Valley mine in Papua New Guinea (PNG), in line with its post-commissioning production ramp-up plan. In addition, further significant exploration drill hole intercepts at the Wafi Golpu deposit were obtained during the quarter.

Both of these assets are part of the Company’s 50% interest in the Morobnairobi in the daily newspapere Mining Joint Venture.

Gold production at Hidden Valley improved by 23%, quarter on quarter, at 26,584 ounces of gold (Harmony’s 50%) produced, due to higher gold feed grades and improved recoveries. Silver production was 44% higher at 191,327 ounces of silver (Harmony’s 50%), as a result of higher recoveries. The average grade for the quarter was 2.21 g/t Au, while the silver grade was 26.6 g/t Ag, with unit costs lower atR195 605/kg (US$884/oz), in comparison to R244 720/kg (US$1042/oz) in the previous quarter.

“These production results, together with the excellent safety performance by the mine during the quarter, demonstrate that our strategy of investing in safe, quality growth projects is starting to deliver” says Harmony chief executive, Graham Briggs.

In October 2010, Harmony reported on drilling of the Wafi Golpu deposit, which extended the mineralisation beyond the porphyry copper-gold resource of 16Moz of gold and 4.8Mt of copper. Further drilling during the December 2010 quarter has again extended the deposit.

Golpu drill results include:

* WR359 860m @ 1.37% Cu and 0.70g/t Au (2.68g/t Au equivalent*) from 1017m
* WR361 186m @ 2.01% Cu and 0.35g/t Au (3.25g/t Au equivalent*) from 446m
* WR362 274m @ 1.07% Cu and 0.29g/t Au (1.83g/t Au equivalent*) from 160m
* WR363 595m @ 2.03% Cu and 1.65g/t Au (4.58g/t Au equivalent*) from 914m

In addition, drill hole WR377, has intersected well-mineralised porphyry at a depth of 1091m down hole which, together with the significant intersections above, has extended the high grade porphyry more than 200m north of the current resource outline (please view the section and plan view below).

Other drilling has focused on pre-feasibility study requirements to gain geotechnical and metallurgical data. The metallurgical drillholes targeted zones in the Wafi gold lodes and have returned significant intersections consistent with the known resource, but with an increased grade. Significant intersections include:

* WR370 202m @ 1.77g/t Au from surface
* WR371 160m @ 3.35g/t Au from 41m

“The Golpu resource continues to expand to the north as ongoing drilling defines further mineralization, providing us with added confidence that we are well on track in achieving our previously stated exploration target of 30Moz of gold and 8Mt of copper. Golpu will be a future world class copper gold mine”, says Harmony chief executive, Graham Briggs. “Continued hard work on ramping up production at Hidden Valley post commissioning is paying off and we are more than pleased with our offshore growth profile”, he added.